Skip to Content
Special Report

How to Invest Like Warren Buffett

Delve into Warren Buffett's investing philosophy,

Mentioned: ,

Undoubtedly one of the most-respected investors ever, Warren Buffett has a simple recipe for investing success. It boils down to:

  1. Buy businesses, not stocks. In other words, think like a business owner, not someone who owns a piece of paper (or these days, a digital trade confirmation).
  2. Look for companies with sustainable competitive advantages, or economic moats. Firms that can successfully fend off competitors have a better chance of increasing intrinsic value over time.
  3. Focus on long-term intrinsic value, not short-term earnings. What matters is how much cash a company can generate for its owners in the future. Therefore, value companies using a discounted cash flow analysis.
  4. Demand a margin of safety. Future cash flows are, by their nature, uncertain. To compensate for that uncertainty, always buy companies for less than their intrinsic values.
  5. Be patient. Investing isn't about instant gratification; it's about long-term success.

Of course, what's simple in theory can be less so in execution.

If you want to invest like Buffett, we've compiled some of Morningstar's work on the approach he and partner Charlie Munger have taken at Berkshire Hathaway (BRK.A)/(BRK.B). We've also taken a look at funds that emulate Berkshire's style, as well as stocks that fit Berkshire's investment parameters. And of course, we've provided our take on what we think Berkshire is worth today. 

4 Warren Buffett Stocks to Buy
These undervalued stocks are among the holdings in Berkshire Hathaway today.

Is Berkshire Hathaway's Stock Undervalued?
Warren Buffett's recent buying spree--including Occidental Petroleum, HP, and Alleghany--has barely dented the conglomerate's cash balance.

Increased Our Fair Value for Berkshire Hathaway
Alleghany purchase looks like another value-enhancing deal.

Watch: Warren Buffett and Berkshire Hathaway in 2022
Morningstar's analyst talks about recent deals, what the stock is worth, and whether Berkshire will pay a dividend any time soon.

Fund That Buy Like Buffett, 2022
Our annual review of the funds that own the same stocks as the Oracle of Omaha.

8 Stocks Warren Buffett Might Buy, if He Could
The investing legend might take an interest in these high-quality stocks if Berkshire Hathaway were nimble enough.

How to Pick Stocks Like Warren Buffett
Berkshire has traditionally benefited from being able to sniff out companies with moats, including for these holdings.

3 Things Investors Can Learn from Warren Buffett
Whether you're new to the market or not, there's plenty to learn from Berkshire Hathaway's leader.

5 Takeaways From Berkshire Hathaway's 2021 Shareholder Letter
Warren Buffett discusses why he keeps cash on hand, warns of "bloviated bull," and explains why he's not a stock-picker.

2020 Shareholder Letter Recap: Warren Buffett on Bonds, Buybacks and Apple
What Berkshire Hathaway's chairman left out of this year's annual shareholder letter is almost as notable as what he put in.

2019 Shareholder Letter Recap: 4 Takeaways from Berkshire Hathaway's Annual Shareholder Letter
Warren Buffett addresses Berkshire Hathaway after his exit, the problem with corporate boards, and why equities are still the place to be long-term.

2018 Shareholder Letter Recap: Buffett Says Focus on the Forest, Forget the Trees
In his annual letter to Berkshire Hathaway shareholders, Warren Buffett argues why the whole is much greater than the sum of its parts--and comments on that sizable cash stake.

2017 Shareholder Letter Recap: Stick With Big 'Easy' Decisions
In his annual letter to Berkshire Hathaway shareholders, Warren Buffett makes the case for doing less and sticking to the fundamentals of investing.

2016 Shareholder Letter Recap: Indexing the Best Choice for Investors Large and Small
Berkshire Hathaway CEO Warren Buffett praises indexing and American dynamism in his 2016 letter to shareholders.

2015 Shareholder Letter Recap: America's Economic Magic Is Alive and Well
America's golden goose of commerce and innovation will continue to lay more and larger eggs, writes the Berkshire chairman and CEO in his annual letter to shareholders.

2014 Shareholder Letter Recap: Berkshire's Simple Secrets to Success
In the firm's annual letter to shareholders, Warren Buffett and Charlie Munger reflect on Berkshire Hathaway's history and future prospects.

2013 Shareholder Letter Recap: 3 Nuggets From Buffett's Annual Letter
More clippings--and a few thoughts--for your Oracle of Omaha file.

2012 Shareholder Letter Recap: Don't Hold Your Breath for a Berkshire Dividend
In his annual letter, Berkshire Hathaway chairman and CEO Warren Buffett laid out a case against a Berkshire dividend and a case for more big acquisitions, and issued a reminder not to worry about short-term uncertainty.

Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.